The Hindu Business Line : Rs 1,400-cr PFC loan for Ratnagiri Gas

The new promoters of the Dabhol power project have tied-up a Rs 1,400-crore bridge-loan from the State-owned Power Finance Corporation (PFC) to fund the completion of the 1,444 MW second phase of the project.

The loan, with a 12-year maturity, could also part-finance the ongoing restart process of the 740-MW first phase of the project, Government officials said.

While Ratnagiri Gas and Power Private Ltd (RGPPL) — the new company promoted mainly by NTPC and Gail (India) Ltd that owns the station now — had sought a much higher loan amount, PFC decided to go in for a bridge loan since the project was yet to sign a fuel supply agreement and a Power Purchase Agreement was still not in place, officials said.

The start-up cost for the first phase alone was slated to be around Rs 675 crore, according to estimates made by NTPC Ltd. This covers a detailed assessment of the generator, steam turbine and gas turbine carried out by GE and a check of all other equipment such as switchyard, cooling water tank and the naphtha tank by BHEL, prior to actual process of kick-starting generation at the station.

RGPPL has also simultaneously undertaken the completion of the project's incomplete second phase and the adjoining LNG (liquefied natural gas) facility. The second phase of the plant is slated for completion in November this year and by then the project is likely to be run on gas if a fuel supply arrangement is in place, officials said. The LNG terminal, which is about 80 per cent complete, is also expected to be ready by August this year.

RGPPL proposes to restart the first phase of the project using naphtha by May this year, even as frantic arrangements are being made by the promoters to arrange for the LNG supply.

More Stories on : Financial Institutions | Power

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
On rising trend

Higher tax breaks likely for health insurance
Budget may signal next phase of reforms

Bonds lower on fears of higher borrowings

Indian Bank sets trend in going rural

Rs 1,400-cr PFC loan for Ratnagiri Gas

Crisil rates UCO Bank's hybrid instrument

Poultry sector seeks reschedule of loans